Mirae Asset Management's 'TIGER 24-10 Corporate Bond Active ETF' Surpasses 300 Billion KRW in Net Assets

Enhancing Returns by Adding High-Interest Rate Attractive Stocks
Notable Performance Achieved Within 2 Months of Launch

[Asia Economy Reporter Kwangho Lee] Mirae Asset Global Investments announced on the 9th that the net assets of the ‘TIGER 24-10 Corporate Bond (A+ and above) Active ETF’ have surpassed 300 billion KRW.

According to the Korea Exchange, as of the closing price on the 8th, the net assets of the ‘TIGER 24-10 Corporate Bond (A+ and above) Active ETF’ stand at 305.7 billion KRW. This ETF, which invests in corporate bonds with an approximate remaining maturity of 2 years, surpassed 300 billion KRW just over two months after its launch as corporate bonds have recently maintained high interest rates, gaining popularity among investors.

Launched in November last year, the ‘TIGER 24-10 Corporate Bond (A+ and above) Active ETF’ is a maturity-matching ETF that can realize the targeted yield if held until maturity, even if market interest rates rise. It mainly invests in corporate bonds rated A+ or higher and seeks a maturity yield of around 4%. The ETF’s benchmark index is the ‘KIS Corporate Bond 2410 Maturity Index’.

Additional purchases are possible until maturity in October next year, and if interest rates rise compared to the initial listing time, purchases can be made at a higher maturity yield level.

Even if new investors make additional purchases, bonds are incorporated at the market maturity yield level at the time of setup, so it does not significantly affect the returns of existing investors. During periods of declining interest rates after listing, profits can be realized through mid-term sales.

When investing using pension accounts, the ‘TIGER 24-10 Corporate Bond (A+ and above) Active ETF’ also offers various tax-saving benefits.

Trading through ISA (Intermediary type), personal pension, or retirement pension (DC·IRP) accounts defers taxation until withdrawal and also provides tax credits. Additionally, unlike individual bond investments that mainly require buying and selling through securities firms, this ETF can be easily bought and sold like stocks.

Seungho Jung, Manager of the Global ETF Management Division at Mirae Asset Global Investments, said, “The appeal to investors was strengthened by diversifying the ETF composition across various issues while including bonds with high interest rate attractiveness relative to credit ratings to enhance returns.” He added, “Compared to individual bond investments, there are many advantages in liquidity, fees, and diversification, so we expect the growth of maturity-matching ETFs to be steep going forward.”